When the price level falls, consumers may feel wealthier and the consumption function will shift upward.
Answer the following statement true (T) or false (F)
True
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An decrease in domestic savings
a. decreases foreign borrowing. b. will improve the trade balance. c. will increase exports. d. will increase foreign borrowing.
The purpose of antitrust legislation is
A) to reduce unemployment. B) to reduce the power of monopoly. C) to increase the power of monopoly. D) to maximize employment for a given price level.
Which of the following would reduce the problem of the poverty trap while still providing financial help to those who need it and assisting them to phase into being self-supporting?
a. Government assistance increased by more than $1 for every $1 earned. b. Government assistance increased by less than $1 for every $1 earned. c. Government assistance reduced by more than $1 for every $1 earned. d. Government assistance reduced by less than $1 for every $1 earned.
Which of the following explains the shape of an average total cost (ATC) curve?
a. Average fixed cost drives up ATC at very high levels of output. b. ATC is high at both very small and very large levels of output. c. ATC curves are U-shaped because variable input costs fluctuate. d. ATC is low at low output and high at high output.